Ukraine has signed a Memorandum of Understanding with the European Union on transitional financing under the Ukraine Facility Programme and a corresponding loan agreement

“Together with our European partners, we are finalising the Ukraine Facility plan and preparing for the full launch of the programme. With the signing of the agreement, Ukraine will be able to access EUR 4.5 billion in March 2024 to support macro-financial stability. Ukraine will be able to receive the next EUR 1.5 billion in April 2024, after meeting the indicators for the transitional financing,” said Yulia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

Transitional financing will be supported based on the results of Ukraine’s implementation of the indicators set out in the plan by early 2024. Ukraine is already implementing 5 indicators in the areas of public finance management, anti-corruption, business environment development, etc. Three of them have been completed, namely:

• adoption of the National Revenue Strategy for 2024-2030;
• adoption of amendments to the Law on the Public Prosecutor’s Office and the Law on Strengthening the Independence of the Special Anti-Corruption Prosecutor’s Office;
• additional measures to prevent and combat illicit proceeds and terrorist financing.
  These are being developed:
• measures to support the implementation of industrial parks as a tool to attract investment to the de-occupied territories;
• harmonisation of the State Land Cadastre and the State Register of Property Rights.
  

In February, the European Parliament adopted the Regulation on the Ukraine Facility. According to them, the EU will provide EUR 50 billion of assistance to Ukraine in 2024-2027, of which EUR 38.27 billion will be allocated to support the state budget. The Ministry of Economy of Ukraine and the European Commission will coordinate monitoring and reporting under the agreement.

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